Houston Lake Mining Inc. (HLM-TSX.V)
_________________________________________________________________________________________________________
For Immediate Release
IP
Geophysics Extends Gold Zones at West Cedartree,
Shareholders Strongly Endorse Houston Lake
Management at AGM
February 23, 2006: Sudbury, Ontario
- Houston Lake Mining Inc. (TSX.V: HLM,
the "Company") is pleased to
provide an update concerning the ongoing
exploration of the Company’s 100%
owned West Cedartree Gold Project located
near Sioux Narrows, Ontario and to report
on proceedings from last week’s Annual
General Meeting. IP geophysical surveys
have just been completed and have successfully
established a minimum strike length in
excess of 1.1km (3600ft.) along both the
McLennan and Angel Hill Gold Zones. A 1000m
(3280ft.) diamond drill program is scheduled
for mid-March and aims to further delineate
the depth and strike extents of the Angel
Hill gold mineralization.
West Cedartree
Gold Project (“WCGP”)
As disclosed
in the press release of October 20, 2005 the
Angel Hill Gold Zone (“AHGZ”)
has an estimated inferred mineral resource
of 106,400 tonnes grading 2.97 g/mt Au
at a cutoff of 2 g/mt (117,286 short tons
grading 0.087 oz/st Au at a cutoff of 0.058
oz/st) or 49,700 tonnes grading 4.77 g/mt
Au at a cutoff of 4 g/mt (54,785 short
tons grading 0.139 oz/st Au at a cutoff
of 0.117 oz/st). Average recoveries of
93.4% have been indicated in preliminary
bench tests. The AHGZ has a strike of N20ºE
and dips to the east at about 70 degrees.
The gold mineralization remains open to
depth and along strike to the south.
The
bulk sampling program forms part of the
recommendations outlined in a recently
published NI 43-101 report on the AHGZ.
The 1000 tonne bulk sample is designed
to test a portion of the AHGZ and is not
intended to be representative of the entire
inferred gold resource. A systematic pattern
of vertical percussion drill holes has
defined a higher grade core of gold mineralization.
This inner core yielded a range of assay
values from 0.054 g/mt Au over 1.52m to
85.9 g/mt Au over 1.52m (2.205 oz/t Au
over 5ft.) with a weighted average of 9.666
g/mt Au (0.282 oz/st Au). The actual grade
of the processed bulk sample may be somewhat
lower than this weighted average owing
to effects of dilution and other factors.
Houston
Lake has entered into a milling/gold purchase
agreement with a third party mill to process
the bulk sample. Milling is expected to
take place within the next few weeks. Houston
Lake has hired Channel Technical Services
Ltd. of Keewatin, Ontario to expedite two
permits for the WCGP. An Advanced Exploration
Permit would seek to allow additional trenching,
stripping and the extraction of a larger
bulk sample. This permit is a required
step towards any potential development.
The Small Scale Mining Permit would position
the Company to take advantage of any potential
third party milling opportunities that
may arise.
JVX Limited of Richmond Hill
, Ontario has just completed IP geophysical
surveys over a portion of the West Cedartree
Gold Project. The survey tested responses
from surface to a depth of approximately
75m (246ft) over a width of 1km (3280ft)
to encompass both the AHGZ and the McLennan
Gold Zones (“MGZ”). The IP
method transmits an electrical current
through the ground and measures the ground’s
ability to maintain an electrical charge.
A high chargeability reading equates to
a relatively high metal content in the
underlying rock. A high metal content is
indicative of the presence of disseminated
sulphides which may be associated with
gold-bearing formations or possibly with
finely distributed gold. A chargeability
measurement of 25 to 30 mV/V is considered
a reasonably strong response.
Initial data
indicated an exceptionally high chargeability
response from both gold zones. Therefore,
the IP survey was expanded from 10km to
15km (or 1.0 to 1.5km along strike of the
gold zones). A preliminary chargeability
map covering a 1.1km (3600ft) section of
the two gold zones has been received to
date. Both of the gold zones are clearly
traceable over the tested strike length
and are offset by minor NW-trending faults.
A strong chargeability high of over 20.5
mV/V to over 50 mV/V is expressed by the
MGZ while the AHGZ is defined by a chargeability
range from 27.9 to over 70 mV/V.
L2400mN has a high chargeability response
coinciding with the stripped portion of
the AHGZ. The AHGZ has been systematically
drilled at depths of 10, 25, 40 and 60m
(33, 82, 131 and 197ft) under L2400mN.
The high chargeability response in this
vicinity is explained by a number of gold-bearing
quartz pods and lenses containing finely
disseminated gold. Only minor disseminated
sulphides were encountered in the drilling
from this locale. From this initial correlation
it appears that IP surveys may be an effective
method for detecting future stripping and
drill targets along both of the gold zone
trends. The Company plans to expand upon
this initial IP geophysical coverage in
future programs.
A 1000m diamond drilling program
is scheduled to begin in mid-March. The
aim of the program is to expand the gold
resource laterally and to depth under the
AHGZ. Independent Consulting Geologist
Dean R. Cutting, P.Geo., is the Qualified
Person under the guidelines of National
Instrument 43-101 and has reviewed this
press release in its entirety.
Annual
General Meeting
The Company held its
Annual General Meeting (AGM) of Shareholders
on February 16, 2006 at the Company’s
Head Offices in Sudbury . Houston Lake
is pleased to report that the AGM was characterized
by a good turnout of about 15 Shareholders
despite inclement winter weather. A total
of 35.6% of the outstanding shares were
voted at the Meeting.
The meeting saw the
re-election of the Board of Directors by
a unanimous vote of 6,679,428 with 380,911
abstaining. The Board of Directors include
Chairman Reginald F. Walker, John G. Kelly,
P. Eng, Robert J. McLean, C.H.R.P., and
E. Grayme Anthony, P. Geo. Sievert & Associates,
LLP were ratified as the Auditors of the
Company by vote of 6,679,428 (94.3%) in
favour with 380,911 opposed. A Fixed Stock
Option Plan was voted on by disinterested
(arms length) Shareholders and the plan
was adopted by a vote of 2,568,778 (83.7%)
in favour with 417,911 opposed. The Fixed
Stock Option Plan reserves up to 4,000,000
shares available for option while maintaining
the former restriction on available options
to 10% of the outstanding shares.
President
and C.E.O., E. Grayme Anthony stated: “In
the Annual General Meeting of February,
2005 we declared that our strategy would
be to focus on the West Cedartree Gold
Project. In retrospect this strategy has
been highly successful. For a total investment
of $740,000 in acquisition and exploration
costs we have identified an inferred mineral
resource containing 10,162 ounces of gold
or $73 ($US63.50) for every ounce of gold
found thus far. We will continue our focus
on the gold project in the year ahead.”
About
Houston Lake Mining Inc.
Houston Lake
Mining Inc. is an exploration company listed
on The TSX Venture Exchange under the symbol
HLM. Houston Lake is actively exploring
for Gold, Platinum Group Metals and Rare
Metals with a strategic focus on northwestern
Ontario . The Company has a total of 19,836,675
common shares issued and outstanding. For additional
information, we invite you to visit us at www.houstonlakemining.com.
Company
Contacts:
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information contained herein.